Former Barcelona goalkeeper Victor Valdes is training with Manchester United as he recovers from a serious knee injury.
Crystal Palace defenders Damien Delaney and Joel Ward have yet to agree new deals at the club.
The attacking midfielder, 20, arrives at St Andrew's to bolster a Blues squad which has struggled so far this season, winning just one and losing five of their opening seven Sky Bet Championship matches.
Lingard, who can play anywhere across midfield, arrives as one of United's most highly regarded assets on the fringes of David Moyes' first team.
Capped by England's Under-21 side last month, Lingard is yet to make his senior debut for United but spent two months on loan at Leicester last season, making five substitute appearances.
He is in the frame to make his debut at home to Sheffield Wednesday on Saturday and has been allocated the number nine shirt by Birmingham boss Lee Clark.